History and Premises of the Dell Desktop Computing Contract
Ricky Roberts, Director of Client Computing
March 3, 2009
History
NAU has maintained an exclusive contract with Dell for Windows based desktop computing equipment for approximately 15 years now, just prior to my arrival at NAU. Prior to Dell, NAU purchased Pony and Gateway equipment. Having experienced significant quality and support issues, ITS decided to coordinate a standardized approach via the RFP process. Periodically in the interim, NAU has conducted that process resulting in three year contracts renewable each year, with an option to add additional years out to five years total. Early contracts were desktop systems only, later ones also included notebooks, and the current contract includes desktops, notebooks, and servers, but not tablets, for which we awarded a non-exclusive contract to HP.
Before the last contract expired, ITS attempted to run a pilot test whereby we would have two major vendors (Dell and HP) on the contract for the last year before another RFP was run. The idea was to evaluate the benefits of added competition versus the added total cost of ownership and support considerations of multiple vendors. However, the process of working with HP literally became so painful (trouble initiating an on-site warranty repair program, attractive and user-friendly on-line store, etc.) that the pilot was not a valid comparison, although it did provide an indication of what working with HP (at the time) was like.
Each RFP committee has had the option of awarding from one or more multiple product lines (desktop, laptop, server) as well as one or more vendors and concluded that single-vendor served the University’s best interest. Each RFP committee has had collaborative representation from around the campus, including IT-Pros such as Allen Sonafrank, Tom Baca, Alan Dale and Richard Toeniskoetter. The current contract was awarded and became effective on April 1, 2006. Note: HP was late and was not considered for the current contract. RFP evaluation criteria are heavily weighted towards price, but also include factors such as warranty, service provisions, and value-added services.
Premises and Considerations
Business class versus consumer class: This is a support consideration policy and purchasing recommendation at NAU vice written into the contract. Technically, any Dell product meets the contract and does not constitute a contract violation. The availability of a business class line is a significant RFP review criteria. Dell has Optiplex business class systems available throughout the “affordability” spectrum, including the three recommended class of systems ITS coordinates that they maintain on the store site. While it is technically true that business class systems are not necessarily any more or less capable at any given model level than consumer class systems, ITS will not support consumer class systems for the following reasons.
1. Parts consistency throughout model life. This is one of the primary driving factors. If you purchase a Dimension, you literally get whatever sound card, etc., Dell has in stock at the time. However, Optiplex models will contain certified standardized parts for the length of the model run. These parts can be reliably stocked for warranty repairs, can be reliably ordered for post- warranty repairs at the most economic and dependable level, and the consistency allows for single ghost image support. For a personally-owned single system, this consideration is not significant, however, for thousands of computers across the organization, it becomes very significant.
2. Predictable model life availability and support. Dell and other vendors who provide business class systems also provide their customers NDA updates on model life and upcoming upgrades upon which to do strategic planning. (These happen at periodic IT Pro meetings at NAU.) Consumer class systems are completely subject to the vagaries of the marketplace.
Single vendor versus multi-vendor: The PC Support Team (and in some limited cases, certified IT-Pros in campus departments) provide certified warranty repair of Dell systems. This warranty repair actually includes a small reimbursement to the University that helps defray support costs. Maintaining certified staff on multiple vendor lines is both more expensive and less efficient. Non-certified repair voids vendor warranties.
NAU engages next-business day warranty service. If parts have to be expressed to NAU, they are not always available to meet that commitment due to ordering deadlines for overnight express, weather conditions such as airport delays and Interstate closures, etc. Not being in a major metropolitan area, NAU requires as part of the RFP process a pre-positioned basic parts “kit” for the major model lines we purchase. Allowing multi-vendor, or even consumer class proliferation would make this kit impossibly large and probably still incomplete.
While engaging a second (or more) vendor might include some small savings through competition, that savings would have to be balanced against support considerations. Dell has not only been the most affordable solution over 15 years based on product pricing, they have also far exceeded other competitors in other evaluation criteria.
ITS provides the campus a baseline ghost image (literally a single image across model lines for faculty and staff support, and an additional image tailored for lab use). This method of support has produced improvements of orders of magnitude over past manual installation, troubleshooting and repair models. Proliferation of vendors and/or model lines (consumer class systems would necessarily entail unique images for each system as well as probably additional manual driver work after installation) significantly complicated image management and efficiency both on centrally-supported systems and for department IT-Pros who utilize and build on ITS ghost images for their faculty, staff and lab support.
Other considerations. It is true that during various promotions, both Dell itself and competing vendors conduct “garage sale” events during which acceptable or less attractive (due to considerations above) systems or parts become available. These events have to be carefully weighed over the full “fleet” of University computing systems as purchased throughout the year. On an individual basis sometimes money can be saved. However, the Dell contract and known certified parts we purchase in bulk provides a very consistently affordable, known quality product that is much more supportable. Some considerations when contemplating “garage sale” events:
1. Insure an apples-to-apples comparison. Many times Dell web site specials may appear a better deal. However, even if the entire configuration matches exactly (often not the case when I’ve become involved), aspects such as the free shipping on our contract may make a difference, especially for a bulk order. For example, all Dell machines purchased through the Premier site come standard with a three-year NBD warranty. This is where we often see “savings” over other machines on the Dell site – they only come with one year of warranty.
2. Admittedly, as a huge organization, Dell very occasionally falls behind on their NAU Premier site pricing. We in ITS monitor and have that corrected. If an apples-to-apples comparison on the Dell site does produce a valid discrepancy, we can address that with our support team. They will adjust pricing on valid differences not addressed above.
3. Maintaining a vendor relationship motivated by a guaranteed contract has resulted in much better service than ad-hoc purchasing would provide, including our Account Manager intervening over and above on numerous occasions where I feel certain that other vendors would not have been as accommodating. Dell also offers further discounts on bulk orders that routinely exceed the contracted discount rate.
Miscellaneous
Any Dell system purchased must come with a Windows license if you plan to run Windows on the machine. Our Microsoft Campus Agreement covers Windows upgrades, not full installs. So, if you purchase a machine running Linux or Free-DOS, you are not authorized to put our standard ghost image onto that machine unless you purchase a copy of Windows.
NAU can also extend warranties on business-class machines for around $80/year, effectively lengthening the lifespan of a machine’s usable life to five years. Gartner’s current replacement posture recommendation is four years for desktop systems, however ITS will support a system for five years.